09/05/2023

Four Million Have Enrolled in Biden’s New Student Loan Repayment Plan

Meanwhile, some lawmakers are trying to stop the repayment plan

Weeks away from the resumption of federal student loan payments, four million people have enrolled in President Joe Biden's new income-driven repayment plan that promises a lower monthly bill and a shorter path to loan forgiveness, the Education Department said Tuesday.

A majority of those borrowers have been automatically switched to the Saving on a Valuable Education plan — commonly known as Save — because they were enrolled in an older plan it is replacing, according to the department. Still, the federal agency said it has received nearly 1 million applications for the program since the soft launch of the online form July 30. The department has touted the plan on social media, through a network of advocacy groups, and by direct outreach to nearly 30 million borrowers.

"We know that student loan bills are challenging … and we want to do everything to make sure borrowers take advantage of the benefits that come with a federal student loan," said Undersecretary James Kvaal on a call with reporters Tuesday. "The Save plan is the most affordable repayment plan ever created, and it's particularly useful to borrowers who are struggling because they have high debts or low incomes."

Please select this link to read the complete article from The Washington Post.